Win number one was that someone got a ride at a bargain price. We discovered Larry, as we had named the auto (yes, we do that), had a new home when a couple of weeks after our donation, we saw him in a shopping center parking lot.

We knew it was our old car because, really, how many of these ugly vehicles were still around? Plus, Larry had a section missing from his grill; it was gone when we bought him used a couple of years earlier. We checked and this car was missing a section of its nose, so we knew it was Larry.

Win number two was that Larry being back on the road meant that Goodwill had made some money from his sale.

And the third win was that the hubby and I got a charitable donation tax deduction.

Still around, but harder to claim: Such donations are still sought by charities across the country. The flier below from the Purple Heart Foundation recently showed up in our mailbox.

And the Austin public broadcasting radio station regularly plays spots soliciting vehicle gifts.

But the process isn't as easy as it was when we put Larry up for adoption.

Back when we donated Larry, the process of giving away a car to a charity and writing it off was a snap. We simply used the Kelley Blue Book value as our deduction amount on Schedule A.

A lot of folks, however, were inflating those valuations. So in 2005, Congress changed the auto donation tax law.

Now the amount you can claim as an itemized charitable deduction depends in part on how the qualified charity uses the vehicle.

In order for you to get the maximum tax deduction on your car donation, the receiving charity must use the vehicle in its operations or give it to a person in need.

But if the charity sells the vehicle, your deduction is based on the price the organization gets for the auto.

That means you must wait to hear from the charity -- you should get an Internal Revenue Service Form 1098-C -- so you'll know how large of an itemized deduction you can claim.

The IRS has a special brochure, Publication 4303, A Donor's Guide to Vehicle Donations, with more details on giving away a car (or boat or airplane or other motorized vehicle) to a charity and claiming the proper deduction. Check it out if you'd rather give away your old auto instead of haggle with potential buyers.

Yes, it's more difficult to donate your jalopy than it used to be. But it's still a viable option that pays off for you on your taxes, as well as for the charity and the future new owner.

Tuesday, December 30, 2014

There are just two days left in the 2014 tax year. That's not much time, but folks determined to save on this year's taxes still have time to make a few year-end moves.

I was up at o'dark-thirty this morning to discuss some quick year-end tax tactics with KARN radio. If you weren't up at 6:10 a.m. (and why in heaven's name would you be!?) or aren't in the Little Rock, Arkansas, broadcast area, here's what I talked about (and more).

Do you itemize? If so, you have more tax-cutting options than those who claim the standard deduction. Here are three such year-end options for folks who fill out Schedule A.

1. Donate to charity. The easiest gift is a cash contribution, which is not just currency, but also a check or donation via credit card. You also can give your favorite charity some clothing or household goods that are in good shape, but which you no longer need or want. And yes, regifting to a charity that Christmas present you really didn't like is totally acceptable. As long as you follow the charitable giving tax rules, you can deduct these donations on your 2014 Schedule A.

2. Pay your state estimated taxes now. Most states follow the federal estimated tax payment schedule; that means the tax year's final quarterly payment isn't due until Jan. 15. But if you can afford to pay all of part of your final state estimated tax amount now, you can deduct that amount in the "Taxes You Paid" section of Schedule A.

3. Pay your January mortgage by Dec. 31. You can deduct that mortgage interest in the "Interest You Paid" portion of Schedule A.

If you don't itemize, all is not lost. Folks who claim the standard deduction, and that's most taxpayers, also can take some steps in these final days of 2014 to reduce their taxes.

4. Set up a self-employed retirement plan. This is a good idea anyway; tax savings are just a bonus. So if you are your own boss and don't have a retirement account, set one up by Dec. 31.

You don't have to contribute to it until the April filing deadline (or even as late as the Oct. 15 extension deadline if postpone your filing), but some self-employed retirement plans must be established by the end of the tax year. The amount you do eventually put into your self-employed retirement plan can be claimed as an above-the-line deduction in the "Adjusted Gross Income" section at the bottom of Form 1040. No itemizing required.

5. The write-off for educators' expenses is another above-the-line deduction. It was renewed for the 2014 tax year as part of the last-minute passage of the tax extenders. This tax break applies to teachers and some other school employees who spend their own money for classroom supplies. In these cases, eligible educators can deduct up to $250 of those out-of-personal-pocket school expenses. If you'll need some supplies next semester and haven't hit the $250 cap, buy them now and deduct them on your 2014 returns.

Preparing for 2014 filing: Now to get ready for the next filing season, which will be here in just three weeks.

As I predicted a couple of weeks ago -- yes, blatant back-patting since Congress had fogged up my crystal ball by it's crazy actions and delays -- tax-filing season will start on time next year. The official date is Jan. 20, 2015.

Here are three things to do before then to be better prepared to file as soon as possible.

1. Pull out your 2013 return. If your personal and financial situations are essentially the same in 2014 as in 2013, this will give you a good idea of what to expect with your taxes since there were no major tax changes in 2014.

2. Know what tax forms to expect. For most folks this is W-2s from employers. A lot of companies/payroll management firms send these out to workers electronically, so check your email boxes. Some places get them out very quickly. For example, the hubby's last 2014 pay period was in mid-December, so he already has his W-2.

If your self-employed, either fulltime or did some side jobs in addition to your regular work, you'll likely get a 1099-MISC form with details on those earnings. You'll also get similar documentation, such as a 1099-INT, 1099-DIV or 1099-B, for investment income. Again, as with W-2s, many banks, investment and mutual fund companies and brokerages send these tax docs electronically.

The IRS gets copies of these and the other array of 1099s, just like it does with your W-2. You want to make sure you get all these forms and that they are correct because Uncle Sam will double check your return entries against the tax documents.

3. There's a new reporting form,1095-A, for some folks this year. You'll see this document if you purchased health care insurance via the federal or a state marketplace this year and got a subsidy to help pay for the coverage. Form 1095-A will detail for you and the IRS that transaction.

This is a new form created for the Affordable Care Act, aka Obamacare. Be on the lookout for it and hang onto it when it arrives. You'll need it when you file your tax return to reconcile the amount of advance tax credit you got when you purchased your policy.

OK. That's enough for the last 48 hours of 2014. Plus, I have to catch a few more ZZZZs before I can face the rest of today!

Monday, December 22, 2014

The stock market has been on a crazy run in 2014. When its wild swings up and down ultimately shake out, many folks will find that their portfolios are going to worth much more.

Some folks took their gains earlier in the year. Others are cashing in those positive holdings as part of their year-end tax planning.

Either way, they'll face taxes on their investment profits.

Granted, the tax rate for long-term capital gains generally is lower than a taxpayer's ordinary income tax rate: 20 percent for higher earners (those in the top tax bracket), 15 percent for most middle-class investors, and no tax at all for folks with capital gains and whose income falls in the 10 and 15 percent tax brackets.

Still, if you can reduce your taxes, even relatively low taxes, you want to do so.

One way to accomplish this lower-tax goal when it comes to investments is by harvesting any tax losses.

This essentially is selling an asset that's lost value. You can use that loss to offset any gains. Just be sure to harvest your tax losses by the end of the tax year.

Extra NIIT attention: Tax loss harvesting has taken on a new urgency in recent tax years among wealthier individuals who are facing the added net investment income tax (NIIT).

The NIIT took effect in 2013 and imposes an additional 3.8 percent tax on either a filer's net investment income or the amount by which a taxpayer's modified adjusted gross income exceeds a certain threshold amount.

The NIIT kick-in levels, which are not indexed for inflation, are:

Filing Status

Threshold Amount

Married filing jointly

$250,000

Married filing separately

$125,000

Single

$200,000

Head of household (with qualifying person)

$200,000

Qualifying widow(er) with dependent child

$250,000

What is considered net investment income? It generally includes income such as interest, dividends, capital gains, rental and royalty income, and non-qualified annuities.

It does not apply to home-sale profits, which already are exempt from taxation when they are $250,000 or less for single home sellers, twice that amount for married joint filers.

Not just for the rich: While the stock market's strong 2014 performance has many investors rushing to lower their taxable -- and net investment income taxable -- gains before 2014 ends, tax loss harvesting is not just for the rich.

Neither is it solely for folks who have capital gains.

In fact, tax loss harvesting can pay off even if you have no capital gains upon which taxes are due. You can use up to $3,000 in capital losses each year to offset your ordinary income.

True, this isn't one you necessarily need to do by year's end. But you do need to think about hiring tax help sooner rather than later. Good tax professionals' schedules fill up quickly once filing season starts, and that looks like it will be on schedule this coming January.

As tax code grows, so does tax pro use: You definitely won't be alone in looking for tax help.

More than 140 million tax returns were filed last year. The Internal Revenue Service says that more than half of those 1040s were prepared with the help of a paid return preparer.

That's not surprising. Every year Congress adds new tax laws or makes changes to existing ones. If taxes aren't your life, you just can't keep up.

Tax pros will be in even more demand in the 2015 tax filing season. This is when millions of filers will face new Affordable Care Act provisions that kicked in this tax year.

Picking the perfect tax pro: Your CPA brother-in-law or another financially astute relative might be quite able to handle your taxes. Your office mates could have some solid suggestions. And chain tax services work well for many.

But every taxpayer and tax situation is different. What works for your sister or neighbor or office mate might not work for you. Neither might their tax preparers.

So do your homework before you decide which type of tax preparer you want to hire.

The Internal Revenue Service wants to help here.

The agency announced Dec. 18 that it is partnering with several national tax and accounting organizations to help taxpayers understand their tax pro options, as well as provide tips on how to pick a reputable tax preparer.

A key component of this initiative is the new Web page, Choosing a Tax Professional. Here you'll find a list of consumer tips for selecting a paid tax preparer.

"Tax professionals are a vital link with American taxpayers, and without them we could not run the nation’s tax system," IRS Commissioner John Koskinen in announcing the effort to help taxpayers find qualified tax help. "Taxpayers have many options for their taxes, ranging from using software to selecting a tax professional. We want taxpayers to understand the different types and categories of tax return preparers available to help them with their tax issues."

American Association of Attorney-Certified Public Accountants (AAA-CPA);

American Institute of Certified Public Accountants (AICPA);

National Association of Enrolled Agents (NAEA);

National Association of Tax Professionals (NATP);

National Conference of CPA Practitioners (NCCPAP);

National Society of Accountants (NSA); and

National Society of Tax Professionals (NSTP).

"The tax return represents one of the biggest financial transactions of the year for many Americans, whether they are getting a refund or paying a tax bill," said Koskinen. "Filling out tax returns accurately is critically important. Between tax law changes and tax scams circulating, it’s more important than ever for people who need professional assistance to select wisely and carefully."

Tax pro directory: In addition, in January the IRS plans to launch on IRS.gov a new Directory of Federal Tax Return Preparers with Credentials and Select Qualifications.

This searchable, sortable database will contain the name, city, state and Zip Code of credentialed return preparers (i.e., those accredited by the IRS partner groups), as well as those who have completed the requirements of the new IRS Annual Filing Season Program (AFSP).

So take some time now, or at least before next filing season starts around the third week of January, to think about your tax situation and which type of tax preparer will be best to guide you smoothly through the 2015 filing process and beyond.

Monday, December 01, 2014

The song is wrong, or at least incomplete. It may well be the most wonderful time of the year, but it's also the busiest. I don't know about you, but busy and wonderful isn't always (or usually) a good convergence.

Unfortunately, there's very little we can do about it this year, especially since Thanksgiving fell late in November. Things right now are even more crunched, what with more shopping, holiday parties, and getting ready to visit relatives or host them at your home, all the while trying to shoehorn in some work.

And I really do hate to add to the urgency of the season … deep breath … but December is also an important tax month.

You have just 31 days to take care of some tax-saving tasks. Fewer, actually, when you consider some actions must be made on business days.

So with the time ticking away -- literally over there in the ol' blog's right column -- here are some December Tax Moves you might want to consider.

Review your portfolio: Overall, 2014 has been a banner year for stocks. But the market did take a couple of dives during the year. Whether you sold some assets when the investing roller coaster was at the top of the track or plummeting down the rail, you have tax options.

For most folks, long-term gains are taxed at a lower rate, either 15 percent or 20 percent. But your stock losers also can pay off at tax time by offsetting your gains, or at least some of them, and reducing your overall tax bill. Or maybe you just want to sell some profitable stocks to reset an asset's basis at a new higher level.

Whatever your investment goal and strategy, review your portfolio now. Any moves for the 2014 tax year must be made by Dec. 31.

Be charitable: You might find you have some holdings that have done well, but no longer fit your investment strategy but you're not too keen on paying taxes on the gain. Give the appreciated stock to charity. Most nonprofits will take these types of donations and you get a charitable itemized tax deduction for the value of the asset when it's donated, as long as you've held it for more than a year.

Take care of home tax maintenance: You've decked your halls. Now make sure your magnificently decorated home pays off not only in holiday cheer, but also at tax time.

Pay you January mortgage payment in December, that way you'll have extra interest you can deduct. Do the same with your property taxes that, if they're like ours, aren't officially due until early next year. Then you can also write off that local real estate tax payment as an itemized deduction.

OK, that's enough … for now. But you can find many more December Tax Moves in the ol' blog's right column, under the bright red heading of the same name, just below the countdown clock ticking off the rapidly dwindling hours left in 2014.

Again, I know taxes aren't at the top of your many holiday season lists, but try to make some time for some of these tax-cutting options. They just could turn out to be a holiday present to yourself that pays off when you file your taxes next spring.

Monday, November 03, 2014

Here we are, into the final two months of the year. That means much of our time will be spent thinking about getting ready for cold weather, use-or-lose vacation days and the rapidly approaching holidays.

But we also need to think about taxes.

November is the perfect month to take some steps so that you don't have to deal with tax turkeys at filing time.

Wild turkeys photo by Yathin S. Krishnappa via Wikimedia

Vote! Many folks will get a direct say on their states' tax policies when they vote tomorrow, Nov. 4. Among the almost 150 ballot questions across the country are 20 tax-related initiatives in 11 states.

The biggies are in Georgia, where voters can set a 6 percent ceiling on the state's individual income tax rate; Tennessee, where an initiative would constitutionally ban any future state and local income or payroll taxes (the current tax on some investment income would be grandfathered); and Illinois, where voters will let lawmakers know whether they think a 3 percent surtax on millionaires is a good idea.

Seasonal work and taxes: Income taxes are always a big concern for workers. If you're looking for or have already landed a seasonal job to bring in some added holiday income, pay attention to how you're paid.

If you're a contractor instead of an employee, you must take care of paying estimated income and the self-employment taxes that are usually withheld from employees' paychecks. Overlook this and you'll owe not only the taxes at filing time, but probably penalties and interest for underpayments, too.

Portfolio tax moves: Have you hung in there as the stock market roller-coastered this year? If all your holdings haven't recovered, you might want to sell the losers. They could help offset any gains you've had, thereby reducing your potential overall tax bill.

If you have more losses than gain, you can deduct up to $3,000 a year against your ordinary income until you use up those losses. In this case, though, you also might want to consider hiring a new investment adviser!

Travel and taxes: Many of us will travel to family gatherings for Thanksgiving. Some folks also are hitting the road for business. If you can combine personal and business travel, carefully document the work-related expenses so you can deduct the costs.

When Turkey Day does arrive, take a break from taxes for food, football and family time.

You'll still some time after you recover from your tryptophan-induced coma, fandom meltdowns and inevitable family overload to take care of other tax tasks.

But instead of waiting until the last monthly minute, check them out pre-holiday. You'll find plenty of November Tax Moves in the ol' blog's right column, under the bright red heading of the same name, just below the countdown clock ticking off the time left in the 2014 tax year.

Following through now on the tax moves that fit your filing situation can ensure that the only turkey you'll encounter will be the perfectly cooked bird on your holiday dinner table.

And the Internal Revenue Service's inflation adjustments last fall told us what income ranges will be taxed at those various rates.

So you don't have to go searching, here they are in the table below.

Tax Rate

Single

Head of Household

Married Filing Jointly or Surviving Spouse

Married Filing Separately

10%

Up to $9,075

Up to $12,950

Up to $18,150

Up to $9,075

15%

$9,076 to $36,900

$12,951 to $49,400

$18,151 to $73,800

$9,076 to $36,900

25%

$36,901 to $89,350

$49,401 to $127,550

$73,801 to $148,850

$36,901 to $74,425

28%

$89,351 to $186,350

$127,551 to $206,600

$148,851 to $226,850

$74,426 to $113,425

33%

$186,351 to $405,100

$206,601 to $405,100

$226,851 to $405,100

$113,426 to $202,550

35%

$405,101 to $406,750

$405,101 to $432,200

$405,101 to $457,600

$202,551 to $228,800

39.6%

$406,751 or more

$432,201 or more

$457,601 or more

$228,801 or more

Print this out or simply bookmark this page. It will come in handy as you start focusing more intently on your 2014 taxes.

Progressive taxes: Remember, even if your annual salary falls in the 39.6 percent bracket, you don't pay that rate on every dollar you earn.

The U.S. tax system is progressive. That means you pay the top rate, or whatever bracket your income tops out at, on the last dollar you earn. The rest of your money is taxed at the lesser rates leading up to your top tax bracket.

So every taxpayer pays 10 percent on the first $9,075 of taxable income that he or she receives. That's $907.50. Then we pay the 15 percent rate on our earnings that fall into that tax bracket and so on, until all our money is taxed at the proper rate.

These tax calculations mean that while your income may be in the 39.6 bracket, your effective tax rate will be less.

More money, more taxes: Of course, wealthier taxpayers also have to worry about some added taxes.

There's the 3.8 percent Net Investment Income Tax, or NIIT, as well as the additional 0.9 percent Medicare payroll tax on top of the 1.45 all of us already have withheld from our paychecks.

These added taxes on the rich kick in if you make more than $200,000 as a single filer or $250,000 as a married couple filing jointly.

All these considerations are why it's better to start thinking about your 2014 taxes now, instead of next April. There's still plenty of time to take the approviate tax actions that could lower the amount you'll owe Uncle Sam this year.

Or maybe you checked the right column's December Tax Moves running calendar.

If so, thanks for reading and good for you and your coming tax bill.

If not, here are the few tax moves you can realistically -- more or less -- make this New Year's Eve.

1. Buy a car.The state and local sales tax option is still available for the 2013 tax year. This means that if you itemize, you can choose whether to deduct state and local income taxes or sales taxes. If you opt for sales taxes, the added local charges on your vehicle (or boat or plane) count. The can even be added to the standard sales tax amount the Internal Revenue Service provides for each state if you decide to use that figure instead of adding up all your receipts.

2. Sell losing stocks.The market's done well, but maybe you or your broker weren't the savviest investors. If you sell your losing stocks today, you can write off those losses against any capital gains you have. If you don't have any capital gains, you can use up to $3,000 in losses against your ordinary income. If you have more than three grand in bad stocks, you can carry the excess forward to future tax years. And consider getting a new investment adviser in 2014.

3. Get married. Or divorced. Your filing status at the end of the year determines how you file your return. Now I'm not saying taxes should trump romance, but they're something to be considered. Some tax breaks are better for married couples. But then, you also could face the marriage penalty if you both work and earn around the same amount. At this late date, it's probably easier to tie the knot than to severe the bonds of legal matrimony, especially if you're ringing in 2014 in Las Vegas.

4. Have a kid. I know the logistics here. This is not something you can do without about nine months of previous planning. But if you are about to deliver, don't try to wait for the First Baby of the Year prizes. You'll get a big tax filing bonus is the new addition arrives before 2013 leaves. Your new baby will be an added 2013 exemption, which is $3,900 for 2013. And you get that amount when you file your taxes next year without having had to change even one diaper the previous year!

5. Give to charity.Donations to qualified nonprofits are deductible if you itemize. You can contribute money, either by check or credit card, or donate household goods. Just make sure you get them in the mail or dropped off at the charity's collection center today.

6. See your doctor or dentist.If you itemize and plan on counting medical expenses, a last-minute trip to your physician or dentist could help you get over the 10 percent of adjusted gross income hurdle you must clear. Also, if you have a medical flexible spending account, Dec. 31 could be the last day you can make an allowable FSA expenditure for which you can be reimbursed.

7. Contribute to your IRA. Yes, you do have until the April 15 filing deadline to add to your individual retirement account, be it a Roth or traditional IRA. But the sooner you put the money into your IRA, the more time it has to earn for your eventual retirement. And if you're contributing to a traditional IRA, you might be able to deduct the amount on your 2013 taxes.

OK, time's short, so let's wrap this up. Get to these year-end tax moves now and you'll still have plenty of time to get ready for tonight's party.

Wednesday, December 18, 2013

Its title alone -- THE Christmas Song, not just A Christmas Song or Some Christmas Song -- gives it predominance in the Christmas carol collection.

And the prominence is well deserved, especially Nat King Cole's rendition of Mel Torme's classic. It is simply superb.

Cole's inimitable voice makes this the quintessential Christmas at home song. We've got a roaring fireplace (mmm, toasty chestnuts!), mom and dad snuggling (remember the mistletoe mention) and the kiddos finally settled in for the night awaiting St. Nick and his flying reindeer.

All these home and hearth musical images naturally got my tax mind wandering to homeownership tax breaks. And that earned The Christmas Song, with all the homey images it conjures, spot number seven on the 2013 Christmas Tax Tip Tunes playlist.

Homeownership's many tax benefits: Owning a residence is a major accomplishment for many folks. It's also a major expense. But the tax code offers home owners some help in covering those costs.

Some homeowners can even deduct the private mortgage insurance, or PMI, they pay on their house loans.

Improvements you make to your home can increase its basis, that it, its value, and that will help reduce your sale profit for tax paying purposes. Or in some cases, might qualify as immediate deductions if they're made for legitimate medical reasons.

December homeowner tax focus: When the end of the year rolls around, home owners should pay special attention to two of their residential tax breaks, the mortgage interest and property tax deductions.

If you pay these amounts by Dec. 31, you can deduct them as itemized expenses on the Schedule A you file with your coming Form 1040.

Take care, though, that you won't face the alternative minimum tax. This parallel tax system, known as the AMT, was devised in 1969 to guarantee that wealthy filers paid their fair share to the IRS. Under the AMT, some usually acceptable tax breaks aren't allowed.

You can still write off your mortgage interest, but real estate and personal property taxes aren't deductible under the AMT. So run the numbers.

If you won't face the AMT and paying these two home-related items will cut your coming tax bill, then write the checks by Dec. 31.

Tuesday, December 17, 2013

Economic wonks have gathered in Washington, D.C., or if they can't travel to the nation's capital, around their video screens and/or television business news channels.

The reason? Today marks the beginning of the final Federal Open Market Committee (FOMC) meeting of the year. The Federal Reserve members will issue a statement on their decisions tomorrow afternoon.

We all know what that means. The stock market will be, at best, erratic while the Fed folks are in session. Investors are nervously anticipating any indication as to exactly when the Fed will dial back its monetary stimulus.

In early trading today, stocks fell fractionally. That, along with the usual year-end profit taking, capital gains loss harvesting and general portfolio adjusting means that market watchers will be busy.

But the lovely holiday song Silver Bells makes me think of another reason why now is a good time to make some specific asset moves.

This is the song that, whenever and wherever I hear it, officially signals for me the beginning of Christmas.

And from a Christmas Tax Tip Tunes perspective, Silver Bells reminds me of a nice, shiny investment that's done well and the option of donating it to charity.

A different type of donation: Most of the time when we have a stock that's done and doing quite well, we hang onto it. No need to mess with success.

Or if we need the cash and have held the asset for more than a year, we sell it and pay the lower capital gains tax rate on our investment's nice return.

But sometimes, a stock or other asset just doesn't fit our investment plan despite how well it's done. In that case, consider giving the appreciated asset to your favorite charity.

The key here is to give away a property that you've owned for more than a year. The charity can use it as it sees fit and get a twofer tax break.

First, you avoid any capital gains tax on the donated asset's appreciation.

Second, if you itemize you can deduct the asset's value at the time of the donation.

Dollar difference by donating: Why not just sell the asset, you ask, and then give the money to the charity? Wouldn't that make things easier for the nonprofit?

As to the first question, if you sell the long-term asset yourself, you'll have to come up with the taxes due on your capital gains.

Say, for example, you have a stock that's gone from being worth $1,000 when you bought it two years ago to $2,000 today. If you sold the stock, you'd owe capital gains tax on the $1,000 profit (I'm using simplified basis/profit amounts for illustrative purposes) at either the 15 percent or, if you're a higher-income earner, 20 percent. That would cut $150 or $200 out of the $2,000 that you would be able to donate to your charity.

As for question number two, most major nonprofits are equipped to deal with stock donations. The asset can be added to the organization's holdings and sold later when the group might have more of a need for the money. Or the organization can sell it immediately.

So you're actually giving the charity more of a money managing choice. And trust me, the group would rather have the full $2,000 that the asset is worth rather than the $1,850 or $1,800 you have after the sale minus taxes. The extra amount can make a difference to a nonprofit.

Follow all the tax rules: Remember that property you donate must be a long-term asset. That is, you've owned it for more than a year.

If you give away property you've owned for a year or less, you only claim a deduction on the price you paid for it. In the example above, that would the $1,000 purchase price instead of $2,000 appreciated value.

And there are special rules for appreciated property other than the standard stocks, bonds, other securities or real estate.

Internal Revenue Service Publication 561 offers an idea of what's involved in the donation of gems, jewelry, art and antiques. Your best bet, however, if you're donating these more specialized type of assets is to hire a tax adviser with experience in this area.

Weekly Tax Tip

Back-to-school tax holidays are back -- It's a late summer perennial, states offering shoppers special days to buy tax-free clothing, computers and classroom supplies. This year 17, and maybe 18 soon, will hold the sales tax holiday weekends or longer. The events save families a few bucks if they follow all the rules. (July 29, 2015)

You also can get a refresher of the Daily Tax Tips posted earlier this year on their respective filing season monthly pages: January, February, March and April.

Sponsored Links

Counting Down to Tax Day

Did you get an extension on April 15to file your tax return?You are not alone.Our countdown clock will make sure that all of us still workingon our tax returns don't missthe Oct. 15 extended deadline.

Time for Tax Tasks

July 1: This is the day on which many states' new laws take effect. This year, gasoline taxes are getting a lot of attention. While federal lawmakers refuse to hike the excise tax that Uncle Sam collects on fuel, some state lawmakers are not nearly so reluctant. Seven states increased their gas and/or diesel excise taxes today. They are California, Georgia, Idaho, Maryland, Nebraska, Rhode Island and Vermont.

July 4: Happy 239th Birthday, America! Most of us will never be totally independent of taxes, but we can celebrate fewer tax hassles.

A tax professional can help you get your tax life in shape, whether it's taking steps to lower your 2015 bill or file that 2014 return that's due by the extended Oct. 15 deadline.

July 10: Do you get tips as part of your job? If so and you received gratuities totally $20 or more in June, use Form 4070 to report them today to your employer.

July 14: The 2015 Atlantic/Gulf of Mexico hurricane season has been relatively tame, with just two named storms (Ana and Bill) so far. But we can't get complacent. Hurricane season, being ticked off on the countdown clock below, can ramp up quickly and will officially continue through Nov. 30.

To prepare for a tropical storm's landfall or the associated rain, flooding and tornadoes that accompany them, check out the ol' blog's special Natural Disasters Resources page. It has physical and financial preparation tips.

July 17: Ah, summertime and the living is easy … as long as you have a great day camp where you can send your kids. Working parents can use the day camp's costs to help claim the child and dependent care credit.

July 21: For older youngsters, getting a summer job is a rite of passage. It's a great way for them to earn some spending money -- or sock away a bit for coming college costs --- and learn life-long financial responsibility lessons. They'll also get schooled on the role of taxes taken out of their paychecks.

July 24: In addition to putting some summer job earnings toward college savings, your young employee can start building a retirement nest egg by opening a Roth IRA.

July 31: Now that we're into the last half of 2015, it's a good time to make some midyear tax moves that can help reduce your coming tax bill, such as evaluating your portfolio for losing stocks that can offset any gains and making deductible donations to your favorite charity.

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I am a professional journalist who has been covering tax issues since 1999. I am not a professional tax preparer. The content on Don't Mess With Taxes is my personal opinion based on my study and understanding of tax laws, policies and regulations. It’s provided for your private, noncommercial, educational and informational purposes only. It’s not a recommendation of any specific tax action(s) you should take. Similarly, mentions of products or services are not endorsements. In other words, my ramblings on the ol' blog are free advice and you know what they say about getting what you pay for. That's why when it comes to filing your taxes, I urge you to get additional, professional, paid-for guidance from an accountant, Enrolled Agent or other qualified tax professional who is familiar with your individual tax circumstances.

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